Watch for the Red Mist When Trading
In trading, beware the red mist… When I used to race formula 1600/2000 cars, I was as competitive as they come. I was too tall and too...
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Insights & Commentary
Natasha H
Jul 18, 20231 min read
Relish, the Forgotten Condiment...
Fun with Option Greeks.... Just like relish is the forgotten condiment.... Rho is sometimes the forgotten Option Greek. Rho measures how...
2 views
Natasha H
May 21, 20233 min read
Volatility, where art thou?
2022 was the year that volatility made a comeback as transitory inflation proved to be anything but. FOMC Chairman Powell, finding...
2 views
Natasha H
May 13, 20231 min read
VIX 18 is expensive, and VIX 23 is cheap??
Again, folks keep asking me about why the VIX is so low - the fact is that it's not that low given the anemic level of day-to-day actual...
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Natasha H
May 12, 20231 min read
Option Pricing - Where does it come from?
Option pricing, or insurance, is a relative value product. For instance, a $300 annual premium for $1 million of life insurance coverage...
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Natasha H
May 9, 20232 min read
Selling Options? On balance not a bad strategy
When observing option pricing, we should always remember that premiums, while certainly linked to reality, are somewhat of an imperfect...
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Natasha H
May 5, 20232 min read
Trade what you see, and hedge what you don't...
"Trade what you see, and hedge what you don't." Words to the wise. The regional bank fiasco is an example of an out-of-left-field unknown...
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Natasha H
May 5, 20231 min read
Fear can lurk below the surface - Options and Volatility can help identify it
When Jamie Dimon was saying the bank rout was over, you know what wasn't agreeing with him? Option pricing. In the options world we are...
4 views
Natasha H
Apr 21, 20231 min read
When Ducks Quack
Of the old trading floor sayings, I always liked "when ducks quack, feed 'em". That meant, when the buyers are aggressively buying stock,...
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Natasha H
Apr 20, 20232 min read
What Guides Gamma Capital Advisors
I started my career way back when (shhhh) on the old exchange open-outcry floor (think Trading Places) as one of the youngest options...
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Natasha H
Apr 18, 20231 min read
Are Options Expensive? How Do We Know?
Are options too expensive most of the time? Generally speaking the answer is YES. Why? Partially because there is a buying-side bias to...
8 views
Natasha H
Apr 13, 20231 min read
Be vewy vewy quiet, the market is trying to sleep...
Is the VIX cheap at 19? 10 day historical volatility is close to 10, the lowest in a year. What does that mean? Think of VIX as the cost...
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Natasha H
Apr 12, 20231 min read
Mr Market Can Only Focus on One Thing at a Time
A lot of folks have asked about the market charging higher despite the regional banking crisis. But isn't that the stock market for ya?...
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Natasha H
Feb 23, 20233 min read
Coffee and Options Newsletter Feb 19 2023
Berkshire Hathaway’s Charlie Munger was asked about long-term valuations: “I don't worry about it too much, because I will be dead." ...
6 views
Natasha Hunt
Feb 22, 20231 min read
Coffee and Options. Market, volatility and other stuff (Feb 1 2023)
“Et tu, Jerome. Et tu…” – said the market bear. Now, I have been short term bullish as you all know from previous letters. But how long...
2 views
Natasha Hunt
Feb 22, 20232 min read
Coffee and Options. Market, volatility and other stuff (Jan 28 2023)
While we see long term vols come off precipitously, we are still in the “covid range”, meaning higher than where we were in 2019. But...
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Natasha Hunt
Feb 5, 20231 min read
Let’s Talk About Volatility
Hans' book on volatility, ETNs, ETPs and the VIX.
2 views
Natasha Hunt
Feb 5, 20234 min read
Coffee and Options Jan 28, 2023
Welcome friends, to today’s edition of Coffee and Options. This week was extremely interesting – the bears were left scratching their...
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The Covered Call Show
Hans talks volatility, Fed, rates, ChatGPT, bull and bear scenarios
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